By Sheri Kasprzak
Atlanta, June 23 - Modtech Holdings, Inc. said it has received non-binding agreements for an $11.7 million private placement.
The company sold 2,063,492.063 shares at $5.67 each to institutional investors including Peninsula Capital Management, Inc.; Peninsula Catalyst Management, Inc.; Gruber & McBaine Capital Management; and certain members of Modtech's management and board of directors. The price per share represents 85% of the average of closing prices from May 26 through June 2.
The investors will also receive warrants equal to half of the number of share issued. The warrants are exercisable at $8.00 each for five years.
The deal is expected to close in early July.
The proceeds will be used to strengthen the company's balance sheet and to offset losses on the company's Heritage High School project.
Based in Perris, Calif., Modtech manufactures modular buildings for the education, construction and industrial sectors.
| Issuer: | Modtech Holdings, Inc.
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| Issue: | Stock
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| Amount: | $11.7 million
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| Shares: | 2,063,492.063
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| Price: | $5.67
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| Warrants: | For half of the shares issued
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| Warrant expiration: | Five years
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| Warrant strike price: | $8.00
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| Investors: | Peninsula Capital Management, Inc.; Peninsula Catalyst Management, Inc.; and Gruber & McBaine Capital Management
|
| Announcement date: | June 23
|
| Stock price: | $6.50 at close June 23
|
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